Optimal times of price reductions for an inventory model with partial backorder and vertical shift demand
RAIRO - Operations Research - Recherche Opérationnelle, Tome 41 (2007) no. 1, pp. 35-47.

This paper investigates an inventory control problem where a firm orders and sells an inventory item through discount strategy in a price sensitive market. From the economic points of view, customers may expect a further price reduction when a firm uses pricing promotion to stimulate demand, the demand curve may vertically shift down when a firm reduces the selling price. Taking these phenomena into account, this paper developed a continuous inventory model for finding the ordering quantity, the number of pricing changing and times of price changes simultaneously so as to maximize the total profit. A solution procedure is developed for finding the optimal decision rules.

DOI : 10.1051/ro:2007010
Mots-clés : inventory, backorder, deterministic demand, multiple discounts 
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You, Peng-Sheng. Optimal times of price reductions for an inventory model with partial backorder and vertical shift demand. RAIRO - Operations Research - Recherche Opérationnelle, Tome 41 (2007) no. 1, pp. 35-47. doi : 10.1051/ro:2007010. http://www.numdam.org/articles/10.1051/ro:2007010/

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